Advanced Series Trust AST Academic Strategies Asset ... - Prudential
Advanced Series Trust AST Academic Strategies Asset ... - Prudential
Advanced Series Trust AST Academic Strategies Asset ... - Prudential
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Potential Conflicts: Side-by-Side Management of Long-Only and Long-Short <strong>Strategies</strong>. QMA currently manages long-only and longshort<br />
investment strategies, and has created and implemented a Conflicts of Interest Policy to address potential conflicts that could<br />
arise in the event, for example, one portfolio is purchasing a security at the same time another portfolio is selling the security. The<br />
Conflicts of Interest Policy is designed to identify and prevent a potential cross of a security (buy and sell) between two portfolios<br />
(unless otherwise permitted under applicable procedures and federal securities regulations), and is reasonably designed to ensure that<br />
all accounts are treated fairly.<br />
Other Investments:<br />
The Portfolio may invest in American Depository Receipts (“ADRs”), American Depository Shares (“ADSs”) and other similar receipts<br />
or shares traded in U.S. markets to be U.S. securities. Additional investments may include exchange-traded funds (“ETFs”). The<br />
Portfolio may invest in derivatives, such as futures contracts or equity swaps, for hedging purposes (to seek to reduce risk) and for<br />
non-hedging purposes (to seek to increase return consistent with the Fund’s investment objective).<br />
In addition, the Portfolio may also (1) hold common stock or warrants received as the result of an exchange or tender offer, (2) buy or<br />
sell securities on a forward commitment basis, (3) lend its portfolio securities, (4) invest in options, futures, forwards and equity<br />
swaps, (5) engage in reverse repurchase agreements for investment purposes, (6) borrow money for investment purposes, and (7)<br />
borrow money for temporary or emergency purposes.<br />
<strong>AST</strong> Schroders Multi-<strong>Asset</strong> World <strong>Strategies</strong> Portfolio<br />
Investment Objective: The investment objective of the Portfolio is to seek long-term capital appreciation. This investment objective<br />
is a non-fundamental investment policy of the Portfolio and may be changed by the Board without shareholder approval. No<br />
guarantee can be given that the Portfolio will achieve its investment objective, and the Portfolio may lose money.<br />
Principal Investment <strong>Strategies</strong>:<br />
The Portfolio seeks long-term capital appreciation through a flexible global asset allocation approach. This asset allocation approach<br />
entails investing in traditional asset classes, such as equity and fixed-income investments, and alternative asset classes, such as<br />
investments in real estate, commodities, currencies, private equity, and absolute return strategies. Absolute return measures the return<br />
that an asset achieves over a certain period of time. Absolute return strategies differ from relative return strategies because they are<br />
concerned with the rate of return of a particular asset and do not compare returns with other measures or benchmarks as with<br />
relative return strategies. The Portfolio is a diversified investment company as defined in the 1940 Act. The Portfolio’s Subadvisers are<br />
Schroder Investment Management North America Inc. (Schroders) and Schroder Investment Management North America Limited<br />
(SIMNA Ltd.). The Subadvisers will seek exposure to the relevant traditional and alternative asset classes by investing the Portfolio’s<br />
assets in varying combinations of (i) securities, including, without limitation, common stocks, preferred stocks, and bonds; (ii) other<br />
pooled investment vehicles, including, without limitation, open-end or closed-end investment companies, exchange-traded funds,<br />
unit investment trusts, domestic or foreign private investment pools (including investment companies not registered under the 1940<br />
Act, such as “hedge funds”) (collectively referred to herein as Underlying Funds); and (iii) certain structured notes and financial and<br />
derivative instruments.<br />
The Subadvisers will seek to emphasize the management of risk and volatility. Generally, the Subadvisers will seek to minimize the<br />
volatility of the Portfolio by:<br />
• Using a wide range of asset classes whose investment performance the Subadvisers believe will not be highly correlated with each<br />
other;<br />
• Employing asset allocation positioning with the aim of providing greater stability of investment performance; and<br />
• Employing derivatives to seek to limit the potential for loss in times of market volatility.<br />
Each asset class will be reviewed on an ongoing basis by the Subadvisers to determine whether it provides the opportunity to<br />
enhance investment performance or to reduce risk. Exposure to different asset classes and investment strategies will vary over time<br />
based upon the Subadvisers’ assessment of changing market, economic, financial, and political factors and events that the<br />
Subadvisers believe may impact the value of the Portfolio’s investments. The Subadvisers will rely on proprietary asset allocation<br />
models to adjust the amount of the Portfolio’s investments in the various asset classes.<br />
The Subadvisers may sell securities when they believe that the underlying assets no longer offer attractive potential future returns<br />
compared to other investment opportunities or that they present undesirable risks, or in order to limit losses on securities that have<br />
declined in value.<br />
<strong>Asset</strong> Allocation. The approximate allocations of the Portfolio across asset classes as of January 31, 2010 is set forth in the table<br />
below. Subject to then-current market, economic, and financial conditions, the Subadvisers expect that the assets of the Portfolio will<br />
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